Which of the following terms appears on an income statement prepared using the contribution approach but NOT on an income statement using absorption costing?
A) Operating income
B) Gross profit
C) Contribution margin
D) Sales

Question

Quizplus · Accepted Answer

Contribution margin is a term used in income statements prepared using the contribution approach, which is not used in absorption costing income statements. Operating income, gross profit, and sales are all included in income statements prepared using both approaches.

Which of the Following Terms Appears on an Income Statement